CAF-6 · Chapter 7 · Question 8 of 15
Which of the following is true regarding the discounting of deferred tax assets and liabilities?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Deferred tax assets and liabilities shall not be discounted.
Explanation
IAS 12 specifically prohibits the discounting of deferred tax assets and liabilities.
More IAS 12 Income Taxes MCQs
- Q10An entity has a trade receivable with a carrying amount of Rs. 10,000. For tax purposes, the revenue is only taxed when cash is collected…
- Q11Wait Ltd recognizes a provision for product warranty of Rs. 50,000. The cost is only deductible for tax purposes when the warranty claims…
- Q12Under IAS 12, 'Current Tax' is:
- Q13The 'Initial Recognition Exemption' applies when an asset is acquired in a transaction that:
- Q14Which of the following would be considered a 'Permanent Difference' (though IAS 12 focuses on temporary ones)?